An important investment news came from Fuel Labs while Bitcoin was blowing under $20,000. In this article, let’s take a look at two recent developments from the altcoin market.
Fuel Labs announces $80 million investment
Fuel Labs is a decentralized initiative aimed at accelerating cryptocurrency transactions. The project team announced an $80 million funding round from some of the industry’s biggest investors. The following companies led the $80 million investment round, according to the announcement made on Tuesday.
- Blockchain Capital
- Stratos Technologies
- Alameda Research by Sam Bankman-Fried
- CoinFund
- Bain Capital Crypto
- TRGC
- Maven 11 Capital
- blockwall
- Spartan
- dialectic
- ZMT
Today, we're proud to announce $80M of support led by @BlockchainCap and @StratosXYZ!
Fuel is the fastest Modular Execution Layer delivering the highest flexible throughput with maximum security guarantees for the Ethereum ecosystem.https://t.co/HC25Q1DmxW
— Fuel Labs (@fuellabs_) September 6, 2022
Fuel offers a different approach to tackling the perceived problems of Blockchain. The project includes a technology designed as a Layer 2 scaling technology. According to the statements in the announcement, it was the first optimistic rollup to launch on Ethereum in late 2020.
Meanwhile, they did not share the separate areas in which the funding would be allocated or how the deal was structured. A spokesperson for the firm said the investments were not centralized. Fuel most recently raised capital in a CoinFund-led $1.5 million round in September last year.
Now, with more than 60 engineers working on the project, Fuel is shaping itself as a “modular execution layer” (MEL). MEL is comparable to, but slightly different from, Layer 2 protocols such as Polygon. It hopes to offer smoother execution without sacrificing the security and decentralization advantages of Ethereum.
Huobi Global adds another altcoin to its list
One of the prominent announcements of the day was the Huobi Global list. The popular cryptocurrency exchange announced on September 8 that it will list Ergo Coin.
https://twitter.com/HuobiGlobal/status/1567462554980466688
ERG is the 222nd largest cryptocurrency by market cap. After the listing news, it broke slightly above $4. In the meantime, this is very positive news for ERG investors as the general market is in decline.
Meanwhile, the altcoin project’s ATH price is $44.06, which it recorded in 2019. ERG is currently trading at 88% discount from this level.
Ergo (ERG) is a programmable Blockchain project with an energy efficient and stable mining protocol. ERG is produced with PoW (mining) just like Bitcoin. Considering that Ethereum will transition to PoS, ERG comes across as one of the older generation networks.
Moreover, we can define Ergo as a secure Blockchain equipped with DeFi functions. Ergo achieves this by acquiring the properties of the two largest cryptocurrency projects, Bitcoin and Ethereum. The project uses the Proof-of-Word (PoW) consensus protocol from Bitcoin to secure the network. It also implements smart contracts like Ethereum for DeFi features. You can find more information in the What is Ergo guide, which we prepared as Kriptokoin.com.
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